L&L International Announces MOU to Acquire Ping Yi Coal Mineadmin
L & L International Holdings, Inc., a U.S.-based company operating coal businesses in China, announced that it has entered into a Memorandum of Understanding (MOU) with GuiZhou Province PingGuan Town PingYi Coal Mine to start discussions on an acquisition of Ping Yi Coal Mine; a profitable, operating coal mine of 150,000 tons of annual production and 31 million tons of proven coal reserves, located in PingGuan Town, GuiZhou Province of China ( the “Mine”). Operating since 2007, the Mine is located approximately 60 miles from L&L’s existing operations area in China.
The merger discussion, part of L&L’s expansion plan, is anticipated to be completed in and around December of 2009, and will enable L&L to better serve the growing demand for coal and energy supply in China. Upon completion of the merger, the Mine would add an additional, estimated $19 million in revenue to L&L in one year, using $130 per ton as an average coal price.
Mr. Hu Se-Way, President of the Ping Yi Coal Mine, stated: “We are excited to work with L&L on the possible merge to enhance our mining efficiency and profits.”
Dickson Lee, President and CEO of L & L, said: “Through the introduction of Tony Li, President of L&L’s KMC subsidiary, we are working together with the Mine to combine our coal mining resources and profits. We are looking forward to cementing this very productive relationship with the Ping Yi Coal Mine and will communicate more details as the merger approaches.”